what is accounting

 the system of recording and summarizing business and financial transactions and analyzing, verifying, and
reporting the results also
 work done in accounting or by accountants.

Accounting is the process of recording financial transactions pertaining to a business. The accounting process
includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax
collection entities.

types of enterprises

 sole proprietorship-The simplest and most common form of business ownership, sole proprietorship is a
business owned and run by someone for their own benefit. The business’ existence is entirely dependent
on the owner’s decisions, so when the owner dies, so does the business.
 partnership-These come in two types: general and limited. In general partnerships, both owners invest
their money, property, labor, etc. to the business and are both 100% liable for business debts. In other
words, even if you invest a little into a general partnership, you are still potentially responsible for all its
debt. General partnerships do not require a formal agreement—partnerships can be verbal or even
implied between the two business owners.

 Limited partnerships require a formal agreement between the partners. They must also file a certificate of
partnership with the state. Limited partnerships allow partners to limit their own liability for business
debts according to their portion of ownership or investment.
 corporation-Corporations are, for tax purposes, separate entities and are considered a legal person. This
means, among other things, that the profits generated by a corporation are taxed as the “personal
income” of the company. Then, any income distributed to the shareholders as dividends or profits are
taxed again as the personal income of the owners.
 Limited Liability Company, or LLC-Similar to a limited partnership, an LLC provides owners with limited
liability while providing some of the income advantages of a partnership. Essentially, the advantages of
partnerships and corporations are combined in an LLC, mitigating some of the disadvantages of each.
 cooperative-A cooperative is owned and controlled by an association of members. It can be set up as a
for-profit or as a not-for-profit organization.

Cooperatives are businesses owned by “member-owners”. Co-ops are democratically controlled by their member-
owners, and unlike a traditional business each member gets a voice in how the business is run. Services or goods
provided by the co-op benefit and serve the member owners

ten steps of the accounting process

Step 1: Transaction Analysis

Step 2: Journalizing

Step 3: Posting to the ledger

Step 4: Preparation for Unadjusted Trial Balance

Step 5: Adjusting Entries

Step 6: Preparation for Adjusted Trial Balance

Step 7: Preparing FInancial Statements

Step 8: Closing Entries

Step 9: Post Closing Trial Balance

Step 10: Reversing Entries

what are the concepts of each step in the accounting process.

1. Identifying the transactions from the events is the first step in the accounting process.Events are analyzed
to find the impact on the financial position or to be more specific the impacts on the accounting equation.
Documents such as; a receipt, an invoice, a depreciation schedule, and a bank statement, etc. provide
evidence that an economic event has actually occurred.
2. Journalizing transactions is the process of keeping a record of all your business transactions, tracking them
in chronological order, and generally includes the date, the account you're debiting or crediting and a
brief description of the transaction that occurred.
3. Posting to the general ledger involves recording detailed accounting transactions in the general ledger. It
involves aggregating financial transactions from where they are stored in specialized ledgers and
transferring the information into the general ledger.
4. 4 wla ko kasabbot sa google ani hahaha
5. Adjusting entries are changes to journal entries you've already recorded. Specifically, they make sure that
the numbers you have recorded match up to the correct accounting periods. Journal entries track how
money moves—how it enters your business, leaves it, and moves between different accounts. adjusting
entries are journal entries usually made at the end of an accounting period to allocate income and
expenditure to the period in which they actually occurred.
6. An adjusted trial balance contains all the account titles and balances of the general ledger which is
created after the adjusting entries for an accounting period have been posted to the accounts.
7. The general purpose of the financial statements is to provide information about the results of operations,
financial position, and cash flows of an organization. This information is used by the readers of financial
statements to make decisions regarding the allocation of resources.
8. A closing entry is a journal entry that is made at the end of an accounting period to transfer balances from
a temporary account to a permanent account.
9. A post-closing trial balance is the final trial balance prepared before the new accounting period begins.
Used to make sure that beginning balances are correct, the post-closing trial balance is also used to
ensure that debits and credits remain in balance after closing entries have been completed.
10. A reversing entry is a journal entry made in an accounting period, which reverses selected entries made in
the immediately preceding period. The reversing entry typically occurs at the beginning of an accounting
period.

The only types of adjusting entries that may be reversed are those that are prepared for the following:

accrued income,

accrued expense,

unearned revenue using the income method, and.

prepaid expense using the expense method.

services manufacture

A full scale manufacturing service is any business that uses components, parts, or raw materials to make a finished
good. ... After production, these goods can be either be shipped to you, sold to another business, or even sold to
another manufacturing businesses.

step 1: analyze asa ang debit ug credit. unsa ang account title nga gamiton

step 2: magbuhat journal entries

step 3: magbuhat t accounts. double rule.

step 4: katung sa columnar na nga naay debit credit. isunod abg assets, lia, ug oe

example:

cash

ar

supplies

ap

capital

rev

step 5: katung naay ipanghatag si miss additional transactions. buhatan napud nimog journal entry para masakto

step 6: trial balance nga na add na ang imong gipang gama sa adjusting entries

step 7: katung mga balance sheet, income stat, changes of oe, ug cash flow

balance sheet: assets (current noncurrent) lia (current noncurrent) oe ( capital, revenue or sales, exp,
withdrawals)

income stat (revenue-exp)

changes of oe (capital + revenue/sales - exp - drawings)

cash flow katung naay operating, investing, ug financing wala kaayo ko ka familiarize

step 8: closing entries same ra sa journal entry

step 9: trial balance pero katu nang naa sa closing entry ang sulod